Tuesday, August 2, 2022

Markets open lower as Pelosi's plane lands in Taiwan

Dow dropped 177, decliners over advancers 4-3 & NAZ went up 24.  The MLP index fell 2 to the 209s & the REIT index was off 1 to the 435s.  Junk bond funds edged higher & Treasuries were sold, raising yields.  Oil was flattish at 94 after yesterday's big drop & gold continues rising, adding 8 to 1796.

AMJ (Alerian MLP index tracking fund)

 

 

 




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The number of job openings declined more than expected in Jun, according to the latest data from the Labor Dept.  There were 10.7M positions available for the month, a slight dip from an upwardly revised 11.3M in May, the Bureau of Labor Statistics reported.  The latest check on hiring is also down from a record 11.85M in Mar.  The data, while improving, still reflects a historically tight labor market creating challenges for companies hiring & retaining workers.  The number of jobs that still need to be filled, about 6M, exceeds the number of people looking for work.  The data is also viewed as a precursor to the monthly jobs data due on Fri.  Employers are expected to have added 250K jobs last month, down from the 372K created in Jun & the unemployment rate is expected to remain at 3.6%.

Job openings dipped in June, labor market still tight

Pres Biden named a team of disaster management & health officials to lead the US response to the monkeypox outbreak as infections continue to rise.  Biden appointed Robert Fenton, an administrator with the Federal Emergency Management Agency, as the head of US efforts to quash the outbreak.  Fenton currently leads the FEMA region that includes California, one of the states hardest hit by monkeypox.  The pres named Demetre Daskalakis, director of the Centers for Disease Control & Prevention’s division of HIV prevention, as the US deputy monkeypox response coordinator.  Daskalakis is an expert on health issues affecting the LGBTQ community, the White House said.  Fenton & Daskalakis will work with state & local authorities to ensure they have enough tests, vaccines & antiviral treatments to fight the virus, according to the White House.  They will also assist with efforts to educate the public on how the virus spreads.  The US has reported nearly 6K cases of monkeypox across across 48 states, DC & Puerto Rico.  The outbreak has spread swiftly since health authorities in Boston confirmed the first US case in May.  California, Illinois & New York, home to the nation's 3 largest cities, are the hardest hit states.  The governors in all 3 states have declared emergencies in response to the outbreak.

Biden names team to manage U.S. monkeypox response as outbreak grows

US gov debt prices traded lower as investors awaited new jobs data & monitored House Speaker Nancy Pelosi's trip to Asia.  The yield on the benchmark 10-year Treasury note rose to 2.611% & the yield on the 30-year Treasury bond ticked up slightly to 2.927%.  Yields move inversely to prices.  The moves come at a time when many investors are questioning whether the Federal Reserve will have to reduce the pace of monetary tightening, given that several economic readings have shown the US economy is slowing down.  Investors are also monitoring US-China relations as Pelosi is expected to meet with Taiwanese officials despite objections from China.

U.S Treasury yields move higher ahead of Pelosi’s expected Taiwan visit

The goings on with China are bringing a high level of drama to the stock market.  All eyes are watching developments.  At the same time earnings are coming & new ones tend to be weaker.

Dow Jones Industrials

 






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